Major changes are occurring in the reserves of XRP on major cryptocurrency exchanges like Binance and Upbit, drawing attention from analysts and investors.
General Data on Reserve Decrease
According to a report by analytics firm CryptoQuant, over $12.4 billion in XRP has disappeared from cryptocurrency exchanges in a week. This amounts to more than 5.7 billion tokens, nearly 10% of the total circulating supply. Upbit experienced the largest drop, decreasing its reserves from over 6 billion XRP to just 1.08 billion within a week.
Reasons for Major Withdrawals
Typically, when large amounts of cryptocurrency are withdrawn from exchanges, it indicates that investors are moving funds to cold wallets for long-term holding. This reduces the amount of XRP available for trading, potentially lowering selling pressure, which may positively influence XRP's price if demand remains strong.
Analyst Opinions and Market
Analysts like Mr. Xoom have flagged the large outflows, particularly from Upbit. Market commentary suggests that this may trigger a 'supply shock,' potentially pushing XRP prices to between $25 and $75. However, Whale Alert has not detected any large on-chain transfers, raising questions about the nature of these withdrawals.
The situation with XRP reserves on exchanges continues to attract attention, and its development will depend on further changes in demand and investor behavior.
